Finance

The Death of Clothing

The underlying problem of weak demand is expected to dog the apparel industry for years, meaning more store closures and more bankruptcies lie ahead — with or without Amazon. BoF By Bloomberg By: Lindsey Rupp, Chloe Whiteaker, Matt Townsend and Kim Bhasin NEW YORK, United States — The apparel industry has a big problem. At a time when the economy is growing, unemployment is low, wages are rebounding and consumers are eager to… The woes of retailers are often blamed ... Read More »

Crimes, radical changes to super, home lending from Hayne final report

Banks face the prospect of criminal charges while the superannuation and home loan sectors are likely to be radically overhauled, in the wake of sweeping recommendations for change from the… By Sarah Danckert, Clancy Yeates & Eryk Bagshaw The Sydney Morning Herald A slew of banks and insurance companies have also been referred to financial regulators overseeing the sector for civil and criminal breaches relating to their superannuation and… However, the report stopped short of making any radical changes to ... Read More »

Is authoritarianism bad for the economy? Ask Venezuela – or Hungary or Turkey

Democracy is at risk worldwide. And the economy may be, too. Seventy-one out of the world’s 195 countries saw their democratic institutions erode in recent years, according to the 2018 year-end report by democracy watchdog Freedom House, a phenomenon known as “democratic backsliding.” Authors: The Conversation Signs of backsliding include elected leaders who expand their executive powers while weakening the legislature and judiciary, elections that have become less competitive and shrinking press freedom. When government institutions erode like this, it ... Read More »

Hayne’s failure to tackle bank structure means that in a decade or so another treasurer will have to call another royal commission

Every 10 to 15 years it’s the same. Ever since financial deregulation in the 1980s we’ve had a finance industry scandal followed by an inquiry, a quick fix, and a declaration that it shouldn’t happen again. Authors: The Conversation In the early 1990s there were royal commissions into the A$1.7 billion Tri-continental/ State Bank Victoria collapse, the A$3.1 billion State Bank of South Australia collapse and the WA Inc collapse which explored the interrelated activities at Rothwells bank, the A$1.8 ... Read More »

‘This is about saving capitalism’: the Dutch historian who savaged Davos elite

Rutger Bregman never intended to take billionaires to task over tax at World Economic Forum Larry Elliott The Guardian Rutger Bregman had not really intended to stick it to the global elite. He never meant to have a pop at the idea that inequality could be solved by philanthropy or inviting Bono to Davos. But when the Dutch historian decided to go off-piste at the World Economic Forum and tell the assembled billionaires they should stop avoiding paying tax, he became an ... Read More »

Europe PANIC: The EU is getting ‘more FRAGILE DAILY’ amidst single market BREAKDOWN

THE European Union is getting more fragile every day and they will consequently stop at nothing to preserve their weakening single market, according to former Greek finance minister Yanis Varoufakis. Freddie Jordan Express The politician spent an enormous amount of time negotiating with the EU during his time in the Greek government. But the bloc’s fragility might also encourage a no-deal Brexit, Mr Varoufakis explained. He told BBC Newsnight on Wednesday evening: “The EU feels more fragile daily and they would much rather ... Read More »

The Threat of a Eurozone Recession

The eurozone may fall into a new recession by the end of this year, with potentially nasty political consequences. Lucrezia Reichlin Project Syndicate In addition to countering the cyclical slowdown, pro-European forces must urgently address the continent’s long-term structural economic problems. LONDON – National statistical offices and international organizations are busy revising down their growth forecasts for Europe this year and next. Although they are doing the same for the rest of the world as well, and for China in ... Read More »

Sweden Officially Backs a CryptoCurrency and Establishes it as their Official Coin

It’s finally happened. A major worldwide government has just bestowed a huge vote of confidence and legitimacy onto the world of cryptocurrencies. Sweden, in an unprecedented move, just announced that they are officially adopting a… The Swedish government just informed us that they have chosen a preferred firm for the purchase and marketing of their new coin – Kryptonex Research Group. The sales of Sweden’s coin officially started January 28 of 2019January 18 of 2019 and currently these coins can be bought ... Read More »

The growing problem that could lead the world into a new kind of financial crisis

One particularly caustic attendee described this year’s Davos as a “reunion of losers”. Ben Wright The Sydney Morning Herald That might seem an odd thing to say given the Swiss mountain resort must have housed the greatest concentration of millionaires and billionaires anywhere on the planet over the past week. But he was alluding to how tarnished the company brands adorning the shop fronts along the promenade have become over the past year and the extent to which the mood ... Read More »

Europe in pieces: Where voters disagree

How a divided Continent faces the 2019 election. By Ryan Heath, Arnau Busquets Guàrdia, Hanne Cokelaere and Hanna Pawelec Politico The European Parliament election in May is expected to produce a major turnover in political power in the EU’s institutions, with populist parties making new gains and voters across the bloc split on what issues to prioritize in the ballot.  But what are voters most concerned about and do they trust the European Union to deliver? Here’s a look at ... Read More »

Corporations ‘failing to pay proper tax rates’ in EU

An investigation by the Greens in the European Parliament has shown big companies throughout the bloc are failing to pay their statutory taxes. The party has called for more social responsibility. Jane Mcintosh DW The only state in the EU where big corporations pay the statutory rate of tax is Bulgaria. In all other states, they pay, on average, less than the official rate. Those are among the key findings in a report is to be presented in Brussels Tuesday by ... Read More »

Davos: leaders talk about globalisation as though it’s inevitable – when it isn’t

Global leaders have descended on the Swiss ski resort of Davos for the World Economic Forum’s annual meeting. Jennifer Johns The Conversation This year’s theme is “Globalisation 4.0: Shaping a Global Architecture in the Age of the Fourth Industrial Revolution”. On the agenda is how countries can respond to and shape changes in how goods are produced, distributed and consumed. It is based on the idea that the world is entering a fourth industrial revolution, where a new wave of ... Read More »

Davos 2019: Global elites in crisis as they gather amid populist assault and accusations of failure

World leaders meet as once-dominant ideology of global trade threatened by nationalism Facing populist backlash and a worrying economic outlook, the world’s financial and political elite will gather in Davos, Switzerland, on Tuesday to discuss the future of global politics. Conrad Duncan Independent The influential World Economic Forum (WEF) takes place as nationalist movements continue to gain strength across Europe and the Americas, and the event’s once-dominant ideology of unrestricted global trade and… In France and the UK, politicians have struggled through months of chaos, caused by the gilets jaunes (yellow vests) movement and… Davos ... Read More »

China’s looming great wall of debt may have ‘major global implications’

While many countries struggled following the 2008 global financial crisis, China appeared as though it had largely escaped unscathed. Tasha Wibawa ABC But observers are becoming increasingly concerned Beijing will struggle to repay an ever-increasing mountain of debt, with potential detrimental consequences for the global market. China’s debt has been a key factor to its economic success in riding out the GFC, due to a large government stimulus injected into its economy. However, the financial boost has mostly led to ... Read More »

Xi Jinping will Give Donald Trump a Victory on Trade

Expect Trump to declare a “triumph” in a great trade deal that will feature China’s purchase of more than a trillion dollars of additional U.S. products. Graham Allison The National Interest With the conclusion of the first round of negotiations yesterday in Beijing, the way ahead for the United States and China to avoid a full-scale tariff war has become clear. With fifty days remaining before the March 1 end of the truce Trump and Xi announced to prevent U.S. ... Read More »

Erdogan’s $2 Billion Reason to Thank the Saudis

Turkey shrewdly took advantage of the spillover demand from Riyadh’s bond sale this week. Investors may well be underpricing the economic risks. Marcus Ashworth Bloomberg There are opportunistic financing deals, and then there’s Turkey. A $2 billion 10-year bond sale appeared out of nowhere for the country on Wednesday, with no roadshow and… But there was one big helping hand. Saudi Arabia had just launched $7.5 billion of new 10- and 30-year notes and had elected for tighter pricing rather ... Read More »